Data continues to support pricing power for some as others squeezed by costs
Just as a ship continues its forward momentum after reducing power on its engines so to the US Economy continues forward momentum.
There is a time lag in what moves the fed makes and when the effects are evident in the economy.
CONSUMER PRICE INDEX – JANUARY 2024
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in January on a seasonally adjusted basis, after rising 0.2 percent in December, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.1 percent before seasonal adjustment.
The index for shelter continued to rise in January, increasing 0.6 percent and contributing over two thirds of the monthly all items increase. The food index increased 0.4 percent in January, as the food at home index increased 0.4 percent and the food away from home index rose 0.5 percent over the month. In contrast, the energy index fell 0.9 percent over the month due in large part to the decline in the gasoline index.
The index for all items less food and energy rose 0.4 percent in January. Indexes which increased in January include shelter, motor vehicle insurance, and medical care. The index for used cars and trucks and the index for apparel were among those that decreased over the month.
The all items index rose 3.1 percent for the 12 months ending January, a smaller increase than the 3.4- percent increase for the 12 months ending December. The all items less food and energy index rose 3.9 percent over the last 12 months, the same increase as for the 12 months ending December. The energy index decreased 4.6 percent for the 12 months ending January, while the food index increased 2.6 percent over the last year.
Full Text of the Report:
Remember
Looking backward at the current market environment it's interesting to see how Akin Investments market views and investing themes have played out over time:
Akin Investments early call on inflation
Bond Buyer Review
Rising interest rates tops list of muni concerns in 2022
By Jessica Lerner January 11, 2022, 10:36 a.m. EST 5 Min Read
Major challenges for the public finance industry abound but rising interest rates is the largest concern for business in 202, market participants said in a Bond Buyer/Arizent Research survey.
Nearly 60% of respondents said rising interest rates are their biggest worry, followed by regulatory requirements or changes at 45% and a lack of face-to-face communication and market volatility at 37% and 36%, respectively.
Ongoing threats from the coronavirus, inflation and legislative inertia on muni issues in Washington, among other factors, also led a majority of those in municipal finance to believe a full economic recovery won’t be reached until at least July.
Thirty-five percent of respondents said they believe a full economic recovery will happen in the second half of 2022, while 40% said they don’t believe it will happen until 2023. Fifteen percent believe it will occur during the first half of this year, and 10% believe the economy has already recovered.
Rising rates “We've had an unprecedented era of low rates," said Stephen Akin, founder of Akin Investment, a registered investment advisor. "Inflation really could get away from the Federal Reserve; it's not out of the realm of possibility.
Akin Investments Call on FORD
8 Best Green to Buy for 2023
Matt Whittaker
Mar 15, 2023
Ford Motor Co. (F)
"I like Ford and their electric vehicle strategy and believe it will help to preserve one of America's icons," says Stephen Akin, registered investment advisor with Akin Investments.
Through 2026, the automaker is investing more than $50 billion globally in electric vehicles and plans to be able to build more than 2 million of them per year by the end of 2026. The annual run rate by the end of this year will be 600,000.
"I like Ford and their electric vehicle strategy and believe it will help to preserve one of America's icons," says Stephen Akin, registered investment advisor with Akin Investments
Ford has already started electrifying some of its most well-known models, offering an all-electric Mustang and F-150. It also offers all-electric vans, a charging network with more than 75,000 chargers, and more than 2,700 EV-certified dealers in all 50 states.
"This electrification strategy is a core component of Ford's goal to (achieve) carbon neutrality globally by 2050," the company says. "Ford is investing significantly to accelerate research and development of battery and battery cell technology."
In followup:
Ford+ Delivers Solid 2023, Provides Outlook for Healthy ’24; Company Declares Regular, Supplemental Stock Dividends
DEARBORN, Mich., Feb. 6, 2024 – Ford+, in its first full year of operating with customer- centered business segments in 2023, demonstrated the strategy’s capacity to adapt to the wants and needs of customers and give them great experiences and value, while generating growth and profitability.
“We’re the only company that gives customers such a wide range of choices – gas, hybrid and electric vehicles – made possible by our Ford+ plan and the talented team that’s carrying it out,” said President and CEO Jim Farley. “Ford is creating a product, software and services powerhouse with huge potential for this year and the long haul.”
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Stephen Akin on Gold with Epoch Times
Andrew Moran
Apr 26, 2023
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, on April 14, 2023.
Year to date, gold prices are up nearly 10 percent and recently flirted with the August 2020 record high of $2,069.40. Gold is typically sensitive to interest-rate movements because they can affect the opportunity cost of holding non-yielding bullion. The buck’s performance can make dollar-denominated commodities more expensive or cheaper for foreign investors. The other factor has been weakening economic data, says Stephen Akin, a “The primary fundamental event that propelled gold well above $2,000 registered investment advisor at Akin Investments
The other factor has been weakening economic data, says Stephen Akin, a registered investment advisor at Akin Investments. "The primary fundamental event that propelled gold well above $2,000 was weaker U.S. economic data,” he told The Epoch Times. “This data suggest that the Federal Reserve could certainly consider slower rate hikes and a pause of rate hikes sooner.”
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